AI-native loan origination for Texas — the #2 mortgage market with 400+ community banks.
Texas is the #2 mortgage origination market in America with over 400 community banks — more than any other state. Confer LOS gives Texas lenders enterprise-grade AI loan origination without enterprise-sized teams. Built for SML compliance, Section 50(a)(6), and the post-executive-order regulatory environment.
The Texas Mortgage Market
Texas is second only to California in mortgage origination volume — and leads the nation in community bank density.
400+
Community Banks in Texas
2nd
Largest Mortgage Market (US)
185K+
Annual Loan Originations
254
Counties Supported
The four largest Texas metros — Dallas-Fort Worth, Houston, Austin, and San Antonio — collectively represent one of the highest-volume mortgage corridors in the country. Population growth, corporate relocations, and relatively affordable housing continue to drive purchase mortgage demand.
According to FDIC data, Texas has approximately 400+ community banks — the most of any state. Many of these institutions exited or scaled back mortgage origination due to post-Dodd-Frank compliance costs. The March 13, 2026 executive orders are designed to bring them back.
Texas Regulatory Environment
Department of Savings and Mortgage Lending (SML)
The Texas SML regulates mortgage companies and mortgage loan originators under Finance Code Chapters 156 and 157. New SML rules effective November 2025 updated governance requirements for mortgage companies and MLOs, including enhanced reporting and supervisory examination standards. Lenders must maintain current compliance with both state licensing and federal requirements.
OCCC & RMLO Rule Review in 2026
The Texas Office of Consumer Credit Commissioner (OCCC) is reviewing Residential Mortgage Loan Originator (RMLO) rules in 2026. This review may impact licensing, continuing education, and supervisory requirements for mortgage professionals operating in Texas — making automated compliance tracking essential.
Section 50(a)(6) — Texas Home Equity Lending
Texas has unique constitutional restrictions on home equity lending under Article XVI, Section 50(a)(6) of the Texas Constitution. These include an 80% combined loan-to-value cap, strict fee limitations, a mandatory 12-day waiting period, and restrictions on refinancing. No other state has comparable constitutional-level mortgage restrictions.
Non-Judicial Foreclosure State
Texas uses a deed-of-trust structure enabling non-judicial foreclosure — meaning foreclosures proceed through a trustee rather than the court system. This requires precise notice sequencing, posting requirements, and trustee sale documentation that must be tracked within your loan origination system from the point of closing.
Federal Executive Orders — March 13, 2026
The March 13, 2026 executive orders direct regulators to reduce compliance burden on community banks, modernize TRID and QM rules, endorse AI appraisal tools, and standardize digital closings. For Texas — with its massive community bank population — these orders represent a significant opportunity to re-enter or expand mortgage origination.
How Confer LOS Helps Texas Lenders
Purpose-built capabilities for the Texas regulatory environment and market.
SML Compliance Automation
Built-in rules for Texas Finance Code Ch. 156/157. Automated MLO licensing checks, state-specific disclosures, and SML reporting — so you never miss a regulatory requirement.
Section 50(a)(6) Home Equity Engine
Dedicated compliance logic for Texas constitutional home equity restrictions: 80% LTV caps, fee limitations, 12-day cooling periods, and anti-steering protections unique to Texas.
8 AI Agents — No Hiring Required
Processing, underwriting, compliance, QC, closing, post-closing, servicing setup, and investor delivery — all handled by AI agents. Scale origination volume without scaling headcount.
TRID & Federal Compliance
Real-time TRID monitoring with tolerance tracking, automatic re-disclosure triggers, and Closing Disclosure accuracy checks. Federal and state compliance in a single platform.
Non-Judicial Foreclosure Support
Texas deed-of-trust workflows with proper notice sequencing, posting requirements, and trustee sale documentation. Compliant default servicing from day one.
Texas Mortgage LOS — Frequently Asked Questions
How does Confer LOS handle Texas SML compliance requirements?
Confer LOS includes built-in compliance rules aligned with Texas Finance Code Chapters 156 and 157, which govern mortgage companies and mortgage loan originators under the Department of Savings and Mortgage Lending. Our AI compliance agent monitors state-specific disclosure requirements, licensing obligations, and reporting deadlines automatically.
Can Confer LOS handle Texas Home Equity Lending under Section 50(a)(6)?
Yes. Texas constitutional home equity lending restrictions under Section 50(a)(6) are among the most complex in the nation — including the 80% LTV cap, fee limitations, and 12-day cooling period. Confer LOS has dedicated compliance logic for Texas home equity loans, preventing violations before they occur.
Is Confer LOS suitable for small Texas community banks?
Absolutely. Texas has over 400 community banks — more than any other state. Confer LOS is purpose-built for institutions that need enterprise-grade origination without enterprise-sized teams. Our 8 AI agents handle processing, underwriting, compliance, and closing so you can originate without hiring dozens of staff.
How does Confer LOS address the March 2026 executive orders for Texas lenders?
The March 13, 2026 executive orders direct regulators to reduce compliance burden on community banks and expand AI tools in lending. Confer LOS already delivers on every provision — tailored compliance for smaller institutions, AI-powered processing, and digital closing workflows. Texas lenders using Confer are ahead of the curve.
What Texas metros does Confer LOS support?
Confer LOS supports lending operations across all Texas markets, including the top-4 metros by mortgage volume: Dallas-Fort Worth, Houston, Austin, and San Antonio. Our system handles county-specific recording requirements and local compliance nuances across all 254 Texas counties.
Talk to the Confer team — we're headquartered in McKinney, Texas.
Whether you're a community bank in DFW, an IMB in Houston, a credit union in Austin, or a lender in San Antonio — Confer LOS gives you the AI-powered infrastructure to originate at scale without scaling your team.